India witnessed a fresh rise in gold and silver prices on Monday, May 25, following developments surrounding possible peace negotiations between the United States and Iran. Market sentiment strengthened after reports suggested progress toward reopening the Strait of Hormuz, a critical global oil transit route.
On the Multi Commodity Exchange (MCX), gold futures gained 0.37 per cent, reaching Rs 1,59,265 per 10 grams during early trade.
Gold Rates In Major Indian Cities
Gold prices remained elevated across key metro cities. In Mumbai, 24-carat gold was priced at Rs 1,59,050 per 10 grams, while 22-carat gold stood at Rs 1,45,790 per 10 grams.
Here are the latest city-wise gold rates:
| City | 22K Gold (10 gm) | 24K Gold (10 gm) |
|---|---|---|
| Delhi | Rs 1,45,880 | Rs 1,59,150 |
| Jaipur | Rs 1,45,880 | Rs 1,59,150 |
| Ahmedabad | Rs 1,45,830 | Rs 1,59,100 |
| Pune | Rs 1,45,830 | Rs 1,59,100 |
| Mumbai | Rs 1,45,790 | Rs 1,59,050 |
| Hyderabad | Rs 1,45,790 | Rs 1,59,050 |
| Chennai | Rs 1,45,790 | Rs 1,59,050 |
| Bengaluru | Rs 1,45,790 | Rs 1,59,050 |
| Kolkata | Rs 1,45,790 | Rs 1,59,050 |
Note: Prices exclude GST and making charges.
Why Gold Prices Increased
The rally in gold prices came after optimism grew over a possible diplomatic breakthrough between the US and Iran. Reports indicating that both nations were close to finalising a peace agreement triggered movements across global commodity markets.
At the same time, crude oil prices witnessed a decline after former US President Donald Trump stated that negotiations with Iran were “largely negotiated.” However, he later clarified that the US would not rush the peace agreement process.
Impact Of Global Markets On Indian Gold Rates
Gold prices in India are heavily influenced by multiple international and domestic factors, including:
- Global gold market trends
- Crude oil price fluctuations
- Import duties and taxation
- Rupee-dollar exchange rate movements
- Geopolitical tensions and investor sentiment
Analysts believe that uncertainty in global markets continues to drive investors toward safe-haven assets like gold.
Gold Remains A Popular Investment Choice
In India, gold continues to hold strong cultural and financial importance. Apart from weddings and festive demand, many investors prefer gold as a hedge against inflation and market volatility.
Experts advise buyers and traders to track daily price fluctuations closely before making investment decisions due to rapidly changing global conditions.